MASTER OF RETAIL CHESSBOARD

Q: What are you seeing right now in the local real estate market for retail space?

A: Overall, the market has improved from the 2008-2010 recession fallout and the loss of many retailers/concepts such as Mervyns, Circuit City, Borders and others. We have been able to absorb these spaces. We are now back down to very low vacancy numbers in the major retailing markets. In fact, in the better locations we are now experiencing intense competition for space beyond capacity.

Q: Have you noticed any trends?

A: Retailers have been focused on efficiency as relates to store sizing. Where they can effectively downsize without impacting their bottom line and operate out of a smaller footprint, we are seeing them do so to reduce operating costs/overhead. We see a great number of restaurant concepts now trending towards smaller sizes and operating in a quick-service format. ... The grocery business is very active with many in the specialty categories expanding: Sprouts, Trader Joe’s and a number of deals being done in the ethnic grocery arena, mainly Hispanic operators and Asian specialties.

Q: What do the national retailers think of San Diego?

A: San Diego continues to be a very solid market for all national retailers, as does coastal Southern California. It has always been a tight market to penetrate, so it can take some patience. With little vacancy. Space is at a premium because of limited land supply and a very difficult entitlement process for new project approvals. As a result, our rents can sometimes create a bit of sticker shock compared to other parts of the country.